IBM Reports Beats Q2 Earnings, Records High Growth For Its Cloud Business

Reportedly, International Business Machines Corporation (IBM) beat consensus analysts Q2 estimates. The company earned $3.17 per share beating analysts’ estimates of $3.07. Profits were buoyed by high margin growth in its cloud business, amid slow growth in its legacy business including mainframes and storage systems. Revenue from the cloud business grew 5% to $4.8 billion during the quarter.
IBM makes 60% of its revenue outside the United States and the stronger dollar rate pulled down its revenue by $500 million. IBM’s biggest business by revenue including infrastructure, cloud, and technology support services recorded a 6.7% drop in revenue to $6.84 billion, disappointing analysts’ estimates of $6.92 billion, as per Refinitiv IBES. IBM’s mainframe servers and storage hardware, fell 19.5% to $1.75 billion. Total revenue dropped 4.2% to $19.16 billion meeting analysts’ expectation.
Chief Financial Officer James Kavanaugh blamed the weakness in the company’s legacy business of selling hardware for the declining revenue, as reported.
Dow 30 component International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide.IBM announced recently two significant quantum processor upgrades for its IBM Q early-access commercial systems. These upgrades represent rapid advances in quantum hardware as IBM continues to drive progress across the entire quantum computing technology stack, with focus on systems, software, applications, and enablement. To learn more about International Business Machines Corp (IBM) and to track its ongoing progress please visit the Vista Partners IBM Coverage Page.

Cloud growth fuels IBM profit beat

Last week, it wrapped up its $34 billion acquisition of Linux maker Red Hat Inc, its biggest deal so far, to expand its subscription-based software offerings. IBM’s Global Technology Services unit, its biggest business by revenue that includes infrastructure, cloud and technology support services..
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